Agricultural Land: What Makes the Sale Complex
Agricultural parcels carry title complications that residential real estate doesn't. Water rights are the biggest. In western states especially, the right to use water for irrigation is a separate property right from the land itself — sometimes held in shares of a ditch company, sometimes recorded as a separate appurtenant right, sometimes included in a USDA irrigation contract. Getting water rights transferred correctly at closing requires a title company experienced with ag land in that state.
Crop leases and farm leases are another factor. If your land has an active tenant farming the ground under a written lease, that lease typically survives the sale — the new owner steps into the landlord role. We're familiar with this structure and it doesn't prevent a sale. If you want the lease terminated before closing, that's a conversation between you and the tenant (and sometimes requires advance notice under the lease terms).
Conservation easements and government program restrictions — CRP (Conservation Reserve Program) contracts, EQIP agreements, and similar USDA programs — can run with the land. We check for these during our research and price accordingly. CRP land in particular has restrictions on use during the contract period but may carry a value premium due to the annual government payments.
None of these complexities are reasons not to sell. They're reasons to sell to a buyer who understands them. Call 928-928-4109.
